International data suggest that economies of countries with different steady states will converge to:
A)Athe same steady state.
B)their own steady state.
C)the Golden Rule steady state.
D)steady states below the Golden Rule level.

Question

Quizplus · Accepted Answer

Economies with different steady states will eventually converge to their own individual steady state. This is because each economy has its own unique characteristics that determine its growth rate, such as institutional quality, human capital, and technology. As a result, the convergence process will not necessarily lead to all countries reaching the same steady state, but rather each country reaching its own steady state that is determined by its own specific factors.

International Data Suggest That Economies of Countries with Different Steady